TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. Subject
title
Fiscal Year 2024-25 Proposed Budget Amendment No. 1.
body
2. Summary
On June 25, 2024, the City Council adopted the Fiscal Year 2024-25 budget with a projected operating deficit of almost $8.0 million. Per City Council direction, and additional staff recommendations, staff is proposing an additional $1.4 million in budget reductions to the Fiscal Year 2024-25 budget.
3. Recommended Action
recommendation
1. Approve the $1.4 million in additional proposed budget reductions.
2. Approve the position changes and total Full-time Equivalents for Fiscal Year 2024-25.
3. Adopt Resolution No. 11562. A Resolution of the City Council of The City of Orange Rescinding Resolution No. 11533 and amending the Citywide Pay Schedule in accordance with the requirements of California Code of Regulations, Title 2, Section 570.5.
4. Provide staff with direction on any additional reductions to the Fiscal Year 2024-25 budget.
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4. Fiscal Impact
Upon approval of the budget reductions, the General Fund total expenditures for Fiscal Year 2024-25 is approximately $154.8 million. Any additional direction for budget amendments provided by the City Council will be brought forward for approval at a future date.
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
b: Analyze future fiscal needs and potential revenue opportunities.
c: Provide appropriate reserves.
6. Discussion and Background
Background:
The City Council adopted the Fiscal Year 2024-25 (FY25) budget on June 25th and directed staff to continue collaborating with the Budget Ad Hoc Committee to identify additional budget reductions. The FY25 adopted budget includes almost $4.1 million in budget reductions, over $4.2 million of additional revenues, of which $3 million is one-time monies.
Tonight, staff is proposing an additional $1.4 million in budget reductions as a result of City Council direction and City Manager recommendation. This reduction includes:
|
Description |
Amount |
|
Part-time staff for special events |
$45,500 |
|
Tree lighting decorations |
16,000 |
|
Movies in the Park |
9,200 |
|
Concerts in the Park |
26,700 |
|
Veteran’s Day |
2,245 |
|
Treats in the Streets |
14,141 |
|
Tree Lighting Ceremony |
55,425 |
|
Special event supplies |
23,650 |
|
Police overtime for special events |
112,833 |
|
Holding six (6) vacancies in the Police Department |
1,024,844 |
|
Total Additional Reductions |
$1,423,306 |
In addition, the FY25 adopted budget included costs associated with staffing changes and maintaining frozen positions as illustrated in Attachment B. The additional six vacancies (noted above) will bring the total Full-time Equivalents (FTEs) for FY25 to just under 712. This is a reduction of over 50 FTEs from Fiscal Year 2023-24 (FY24). Details of the total FTEs can be found in Attachment B.
Approval of the proposed FY25 budget amendment will reduce the projected operating deficit to $6.6 million, down $1.4 million from the original estimate of $8.0 million. The following is the updated FY25 General Fund’s fiscal position.
7. ATTACHMENTS
• Attachment A - FY25 Budget Reductions
• Attachment B - FY25 Position Changes and FTEs
• Attachment C - Resolution No. 11562